The document outlines the fundamentals of project management, emphasizing projects as unique endeavors with distinct objectives, timelines, and limitations, which are crucial to organizational success. It discusses the project life cycle, key phases of project management (initiation, planning, execution, monitoring, and closure), and the importance of methodologies such as risk management and work breakdown structures in ensuring project efficiency and effectiveness. Additionally, it describes the roles and responsibilities of project managers in leading teams and navigating challenges to meet project goals within budget and schedule constraints.

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Chapter 1
Introduction of Project
Management

2. first-2
Introduction
• Examples of projects
– Split the atom
– Tunnel between England and France
– Introduce Windows 8
– Disneyland's Expedition Everest
“Projects, rather than repetitive tasks, are now the
basis for most value-added in business”
-Tom Peters

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Project vs. Process Work
Project
• Take place outside the
process world
• Unique and separate
from normal
organizational work
• Continuously evolving
Process
• Ongoing, day-to-day
activities
• Use existing systems,
properties, and
capabilities
• periodically repetitive
A project is a temporary endeavor undertaken to
create a unique product or service.
PMBoK 2000

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Additional Definitions
• A project is a unique venture with a beginning
and an end, conducted by people to meet
established goals within parameters of cost,
schedule and quality. Buchanan & Boddy 92
• Projects are goal-oriented, involve the
coordinated undertaking of interrelated activities,
are of finite duration, and are all, to a degree
unique. Frame 95

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Elements of Projects
• Complex , one-time processes
• Limited by budget, schedule, and resources
• Developed to resolve a clear goal or set of
goals
• Customer-focused

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General Project Characteristics (1/2)
• Ad-hoc endeavors with a clear life cycle
• Building blocks in the design and execution of
organizational strategies
• Responsible for the newest and most improved
products , services, and organizational processes
• Provide a philosophy and strategy for the management
of change

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General Project Characteristics (2/2)
• Entail crossing functional and organizational
boundaries
• Traditional management functions of planning,
organizing, motivating, directing, and controlling apply
• Principal outcomes are the satisfaction of customer
requirements within technical , cost , and schedule
constraints. constraints
• Terminated upon successful completion

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Process & Project Management (Table 1.1)
Process
1. Repeat process or product
2. Several objectives
3. Ongoing
4. People are homogeneous
5. Systems in place to integrate
efforts
6. Performance, cost, & time known
7. Part of the line organization
8. Bastions of established practice
9. Supports status quo
Project
1. New process or product
2. One objective
3. One shot – limited life
4. More heterogeneous
5. Systems must be created to
integrate efforts
6. Performance, cost & time less
certain
7. Outside of line organization
8. Violates established practice
9. Upsets status quo

9. A Project
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A project can be considered to be any series of activities and tasks that:
- Have a specific objective to be completed
within certain specifications
- Have defined start and end dates
- Have funding limits
- Consume human and nonhuman resources
- Are multifunctional

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Why are Projects Important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
4. Emergence of global markets
5. Economic period marked by low inflation

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Project Life Cycles
Man Hours
Conceptualization Planning Execution Termination
Fig 1.3 Project Life Cycle Stages

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Project Life Cycles
• Conceptualization - the development of the initial
goal and technical specifications.
• Planning – all detailed specifications, schedules,
schematics, and plans are developed
• Execution – the actual “work” of the project is
performed
• Termination – project is transferred to the
customer, resources reassigned, project is
closed out.

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Project Life Cycles and Their Effects
Conceptualization Planning Execution Termination
Uncertainty
Client Interest
Project Stake
Creativity
Resources
Fig 1.4

14. What is Project Management?
• The art of organizing, leading, reporting and
completing a project through people

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Project management
Project management involves project planning and
project monitoring and includes such items as:
• Project initiation
– Selection of the best project given resource limits
– Recognizing the benefits of the project
– Preparation of the documents to approve the project
– Assigning of the project manager
• Project planning
– Definition of the work requirements
– Definition of the quality and quantity of work
– Definition of the resources needed
– Scheduling the activities
– Evaluation of the various risks

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Project management
• Project execution
– Negotiating for the project team members
– Directing and managing the work
– Working with the team members to help them improve
• Project monitoring and control
– Tracking progress
– Comparing actual outcome to predicted outcome
– Analyzing variances and impacts
– Making adjustments

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Project management
• Project closure
– Verifying that all of the work has been accomplished
– Contractual closure of the contract
– Financial closure of the charge numbers
– Administrative closure of the paperwork

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Quadruple Constraint of Project Success
Success
Budget
Client
Acceptance
Schedule Performance
Within time
Within cost
At desired
performance
Customer
satisfaction

19. What is Project Management?
• A project is a planned undertaking
• A project manager is a person who causes things
to happen
• Therefore, project management is causing a
planned undertaking to happen.

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The role of project management
Management Non-management

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Benefits from project management
• Identification of functional responsibilities to ensure that
all activities are charged for, regardless of personal
turnover
• Minimizing the need for continuous reporting
• Identification of time limits for scheduling
• Identification of a methodology for trade-off analysis
• Measurement of accomplishment against plans
• Early identification of problems so that corrective action
may follow
• Improved estimated capability for future planning
• Knowing when objectives cannot be met or will be
exceeded

22. Project Manager Role
• Integrating the activities necessary to
develop a project plan
• Integrating the activities necessary to
execute the plan
• Integrating the activities necessary to
make changes to the plan

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Project Manager Role
Managing relationships:
- Within the project team
- Between the project team and the functional organizations
- Between the project team and senior management
- Between the project team and the customer's organization,
whether an internal or external organization

24. Project Manager Role
• A Good Project Manager
– Takes ownership of the entire project
– Is proactive not reactive
– Adequately plans the project
– Is Authoritative ( NOT Authoritarian)
– Is Decisive
– Is a Good Communicator
– Managed by data and facts not uniform optimism
– Leads by example
– Has sound Judgment
– Is a Motivator
– Is Diplomatic
– Can Delegate

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Four Dimensions of Project Success
Project
Completion
Time
Importance
first
Project
Efficiency
4
Preparing for
The Future
2
Impact on
Customer
3
Business
Success

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Spider Web Diagram
0
0.5
1
1.5
2
2.5
3
Project Scheduling
Structural Support for
Project Management
Portfolio Management
Coaching, Auditing and
Evaluating Proejcts
Control Practices
Project Stakeholder
Management
Networking Between
Projects
Personnel Development for
Projects

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Project Management Maturity
Generic Model
Low Maturity
Ad learning process, no common language, little
support
Moderate Maturity
Defined practices, training programs,
support organization
High
Maturity
Institutionalized,
seeks continuously
improvement.
improvement

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Project Elements and
Text Organization

29. first-29

30. Project management Plan - PMP
 Master Document for Project
 Defines the following:-
 Project Objectives, Scope, Deliverables
 Stakeholders (Internal & External)
 Work to be done (WBS)
 Project Organization and Resources (OBS)
 Project Costings (CBS)
 Project Schedule
 Procurement/Contract Strategy
 Risk Management
 Quality management
 Change Management

31. Project Planning

32. Project Planning
• Adequate planning leads to the correct
completion of work

33. Planning
• Inadequate planning leads to frustration towards
the end of the project & poor project performance
Project Start Project End

34. Work Breakdown Structure (WBS)
• The Work Breakdown Structure is the
foundation for effective project planning, costing
and management.
• It is the most important aspect in setting up a
Project
 It is the foundation on which
everything else builds

35. Work Breakdown Structure -
Definition
“A Work Breakdown Structure (WBS) is a
hierarchical (from general to specific) tree
structure of deliverables and tasks that need to
be performed to complete a project.”

36. Project Planning – WBS (1)
 Lowest Level of WBS is the Work Package
(WP)
 WP can be clearly defined allowing package
to be costed , scheduled and resourced
 WP contains a list of Tasks to be Performed
that form the basis for the Schedule
 WP allows assignment of responsibilities
(Work Package Manger, WPM)

37. Project Planning – WBS (2)
 WBS allows hierarchical build-up of costs
and schedule
 Cost and Schedule can be reported at any
level of the WBS
 WBS facilitates strong management during
project execution (Cost and Schedule
control)
 WBS can be used for many other things -
Document Management, Risk Management
etc.

38. Project Planning
 A word about Scheduling
– Schedules (task durations) can have a wide
variation
– There is no unique answer. Rather, there is a
statistical variation depending on assumptions
– Need to understand the basis of scheduling
(Most challenging; Most likely; Absolute certainty
- bet your life on it!)
– Most people are very/naive optimistic

39. Common schedule development
Accuracy of Timescale Estimates
0
10
20
30
40
50
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Timescale
Probability
First
Estimate
Subsequent
Estimates

40. Project Planning – Key Points
• Recognize that adequate project planning is
essential
• Produce a sound WBS
• Use the framework provided by the Project
Management Plan (PMP) template
• Involve the right people
• Allow enough time
• Be systematic

41. Project Risk Management

42. Project Risk – Definition (1)
“Project risk is an uncertain event or condition that,
if it occurs, has a positive or negative effect on a
project objective”

43. Project Risk – Definition (2)
“A combination of the probability of a defined threat
or opportunity (Likelihood) and the magnitude of
the consequences of the occurrence (Impact)
defines a Risk Index”

44. Risk Impact
Threat → Scope → Poor Quality Product
Threat → Schedule → Late Delivery
Threat → Cost → Overspend
• In addition there are health, safety and
environmental threats that must be managed

45. Risk Management Process
• Identify Risks
• Assess likelihood and impact
• Rank risks and priorities
• Define risk management approach & actions
• Implement actions
• Monitor & review

46. Risk Management – Key Points
• Make the management of risk integral to the way
the project is managed
• Ensure that cost and time contingencies are
consistent with identified risks
• Focus on the “significant few” – don't try to
manage too many risks
• Be vigilant and proactive

47. Project Monitoring and Control

48. Project Monitoring
• Typical Monitoring Activities
– regular reviews of progress against schedule using WBS
as basis (Plan against Baseline)
– regular review of actual costs (O/P from SAP) against
budgeted costs and Earned Value at WBS level
– regular review of resource loading
– regular progress meetings with project team
– regular meetings with contractors
– production of progress periodic reports
– risk reviews
– inspections/ audits

49. Project Control
• Typical Control Activities
– assign responsibilities at Work Package level
– staged authorization of work to be done
– staged release of budgets (staged release of WBS(e)
numbers)
– ensure PM has a 'Management Reserve' under his
control
– seek corrective action reports when work packages go
'off track' (overrunning or overspending)
– release Management Reserve carefully

50. Project Monitoring and Control
Summary
• Monitor against the plan – status regularly
• Take a factual approach to decisions
• Identify management action early
• Check that defined controls are being applied –
correct if necessary
• Apply change control

51. Introduction to Design
Management

52. Design Management
• Design takes place as part of a project
• Design Management is part of Project
Management
• Design Management considerations must be
included in the PMP

53. Design Stages
• Conceptual Design
• Scheme Design
• Detailed Design

54. Conceptual Design Phase
• Develop Conceptual Design
• Define Constraints & Interfaces
• Carry out Conceptual Design Review
• Initiate Safety Case Modification if required
• Obtain Approval to Proceed to next stage

55. Scheme and Detailed Design
• Basic considerations and processes similar to
concept
• Need to ensure that safety & environmental
issues receive proper consideration as design
develops

56. Safety & Environment
• Need to ensure that safety & environmental issues
receive proper consideration as design develops
– Involve the right people from the start
– Systematically identify issues – Hazards/Risks,
Environmental Aspects & Impacts
– Carry out rigorous reviews at each design stage
– Control Design Changes
• MUST take note of CDM Regulations

57. CDM Regulations
• CDM - Construction (Design & Management)
• Regulations recently updated
• Now there must be someone in EACH Project
Responsible for CDM
• Currently information is on the Conceptual,
Scheme & Detailed Design steps on the Process
Maps
• More information will be developed over the
coming months

58. Design Change control
• Needs to be a formal and defined procedure
• New procedure

59. Confirm Completion
• Ensure design records are complete and
accurate
• Ensure any outstanding actions or issues are
addressed
• Ensure Maintenance Records are produced
• Ensure User Manuals are produced
• Hold a formal Post Project review